PetroEnergy Resources Corp. has relinquished its wind energy service contract in Sual, Pangasinan, as studies showed that the resources in the area were “insufficient to support commercial operations.”
In a disclosure to the Philippine Stock Exchange, PetroEnergy said the decision was based on the results of technical studies conducted by PetroEnergy, which covered two years of wind data gathering activities and resource assessment.
The move was approved by the Department of Energy late last month, the company added.
PetroEnergy’s contract was awarded in 2009, together with another wind service contract for a prospective area in Nabas, Aklan. Based on initial estimates, the company had hoped to put up facilities that could generate 30 megawatts of power each.
Initial measurements yielded promising results but later failed to meet the criteria that would have allowed PetroEnergy to build the Sual wind power plant.
The company spent $500,000 for the feasibility studies of the two proposed wind power projects over the two-year pre-development stage. This was on top of the supposed investments, placed at $100 million, to be infused into the planned wind farms.
PetroEnergy did not say whether it was pushing through with the wind power project in Aklan.
The company is, however, pushing through with its 20-MW geothermal power project in Mt. Makiling through Maibarara Geothermal Inc.
In September, MGI—a consortium composed of PetroEnergy, Trans-Asia Oil & Energy Development Corp. and PNOC Renewables Corp.—secured a P2.4-billion project loan from two local banks to fund the construction of the geothermal facility.